Unit 3: Interests in Real Estate Flashcards
What are the 4 government rights in land?
PETE
Police Power
Eminent Domain
Taxation
Escheat
What is Eminent Domain?
The Right to take PRIVATE LAND for public use
What is Police Power?
PUBLIC CONTROL of land
Right to enact and enforce laws governing land use
Planning, zoning, building codes, permits, inspections,
Determines how land can be developed
What is Condemnation?
The process used to take private land and use it for public use i.e. highways
Taxation
Real property taxes and special assessments
Enforced by a tax forfeiture lien
Property Lien
An obligation that has to be met, example: Mortgage, Taxes, if these are not met, the property can be taken
Special Assessments
Charges against a property that benefit from a public improvement
Examples: Paving, curb/gutter, street lights
What is the most powerful lien?
Property tax lien
Escheat
Governments reversionary right to take property that has been abandoned
This is exercised when a person dies with NO will (Intestate) and without heirs, the property goes back to the state
What is an Estate
An interest or right in real property that allows or will allow possession
What are the two types of Estates?
Freehold estates
Leasehold
What is Freehold Estate
Ownership for an indefinite duration
What is Leasehold estate?
Possession (not ownership) for a fixed term
What are the 3 types of Freehold Estates?
-Fee Simple Absolute (buy/sell): Most complete (Maxiumum ownership estate), lasts indefinetely
-Fee Simple Defeasible/Qualified Fee (may own as long as you don’t do this, or may own as long as you do this) Example: Someone donating a chunk of land and operate it as a nature preserve
-Life Estate: lasts for their life: Upon death of the
4 Types of Leasehold Possession
Estate for Years
Periodic Estate (renting)
Estate at Will
Estate at Sufferance
Right of Possession: Leasehold Estates
The purchaser of a leased property obtains ownership “Subject to” the lease
Ex: If you buy an apartment complex, those leases go with the purchase
Periodic Estate (tenancy)
Ex: Renting month to month
Estate tenancy at will
Tenant occupies at landlords discretion
No agreement specifying term and payment of rent
What are the 4 Encumbrances
Deed restrictions
Lien
Encroachment
Easements
What is an Emcumbrance?
An encumbrance is any claim, right or interest held by a party who is not the legal owner of the property
Encumbrance is an appurtenance attaches to and binds real property
Easement
The Right to use the land of another for a specific purpose (Using another persons land to get to your land) Easements transfer with deed PERMANENT
What is an Easement in gross?
A commercial easement held by a company, government or person
Has no dominant property, only servient property
Ex: Irrigation ditches
Easement in necessity
Court-ordered easements
OWNERS CAN NOT CREATE LAND LOCKED PROPERTY
Created when an owner sells or contiguous parcel of land that has no legal access
Deed restrictions must be for what?
LAWFUL PURPOSES
Deed restrictions may be more STRICT than zoning
What is a Lien?
A claim on land to secure payment of debt
Allows creditor to take and sell the property if not paid
What is a homestead exemption
It’s created by state statue to protect a primary residence from unsecured creditors
What is an Encroachment?
YOU’RE ON MY PROPERTY
Ex: A tree limb that extends into neighbors property
What is a License?
Revocable permission that grants a privilege to use the property
NOT A RIGHT - but permission to use
Can be taken away by grantor at ANY time
